RCI HOSPITALITY HOLDINGS, INC. 10-K

Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is quoted on the NASDAQ Global Market under the symbol “RICK.” Holders On December 13, 2024, the closing stock price for our common stock as reported by NASDAQ was $52.09, and there were 87 stockholders of record of our common stock (excluding broker held shares in “street name”). Currently, we estimate that there are approximately 11,700 stockholders having beneficial ownership in street name. Transfer Agent and Registrar The transfer agent and registrar for our common stock is Colonial Stock Transfer Company, Inc., 66 Exchange Place, 1st Floor, Salt Lake City, Utah 84111. Dividend Policy Prior to 2016, we had not paid cash dividends on our common stock. Starting in March 2016, in conjunction with our share buyback program (see discussion below), our board of directors declared regular quarterly cash dividends. Below are our historical dividend payments: Quarterly Dividend per Share Second quarter 2016 through third quarter 2019 $0.03 Fourth quarter 2019 $0.04 First quarter 2020 $0.03 Second quarter 2020 $0.04 Third quarter 2020 $0.03 Fourth quarter 2020 through first quarter 2022 $0.04 Second quarter 2022 through first quarter 2023 $0.05 Second quarter 2023 though third quarter 2024 $0.06 Fourth quarter 2024 through current $0.07 During fiscal 2024, 2023, and 2022, we paid cash dividends totaling $2.3 million, $2.1 million, and $1.8 million, respectively. 27 Table of Contents Purchases of Equity Securities by the Issuer Our share repurchase activity during the three months ended September 30, 2024 was as follows: Period Total Number of Shares (or Units) Purchased Average Price Paid per Share (or Unit) (1) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2) Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet be Purchased Under the Plans or Programs July 1-31, 2024 130,244 $ 44.85 130,244 $ 23,025,567 August 1-31, 2024 21,895 $ 45.23 21,895 $ 22,035,349 September 1-30, 2024 22,651 $ 44.16 22,651 $ 21,035,109 174,790 174,790 (1) Prices include any commissions and transaction costs, excluding excise tax on stock buybacks. (2) All shares were purchased pursuant to the repurchase plans approved by the board of directors. On July 9, 2024, the board of directors approved a $25.0 million increase in the Company's share repurchase program. Equity Compensation Plan Information On February 7, 2022, our board of directors approved the 2022 Stock Option Plan (the “2022 Plan”). The board’s adoption of the 2022 Plan was approved by the shareholders during the annual stockholders' meeting on August 23, 2022. The 2022 Plan provides that the maximum aggregate number of shares of common stock underlying options that may be granted under the 2022 Plan is 300,000. The options granted under the 2022 Plan may be either incentive stock options or non-qualified options. The 2022 Plan is administered by the compensation committee of the board of directors. The compensation committee has the exclusive power to select individuals to receive grants, to establish the terms of the options granted to each participant, provided that all options granted shall be granted at an exercise price not less than the fair market value of the common stock covered by the option on the grant date, and to make all determinations necessary or advisable under the 2022 Plan. On February 9, 2022, the board of directors approved a grant of 50,000 stock options each to six members of management subject to the approval of the 2022 Plan. See Note 1 1 to our consolidated financial statements for details. 28 Table of Contents Stock Performance Graph The following chart compares the five-year cumulative total stock performance of our common stock; the NASDAQ Composite Index (IXIC); the Russell 2000 Index (RUT); and the Dow Jones U.S. Restaurant & Bar Index (DJUSRU), our peer index. The graph assumes a hypothetical investment of $100 on September 30, 2019 in each of our common stock and each of the indices, and that all dividends were reinvested. The measurement points utilized in the graph consist of the last trading day as of September 30 each year, representing the last day of our fiscal year. The calculations exclude trading commissions and taxes. We have selected the Dow Jones U.S. Restaurant & Bar Index as our peer index since it represents a broader group of restaurant and bar operators that are more aligned to our core business operations. RICK is a component of the NASDAQ Composite Index and the Russell 2000 Index. The historical stock performance presented below is not intended to and may not be indicative of future stock performance. 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 RCI Hospitality Holdings, Inc. $ 100.00 $ 98.88 $ 332.43 $ 315.45 $ 293.07 $ 215.37 NASDAQ Composite Index $ 100.00 $ 139.61 $ 180.62 $ 132.21 $ 165.26 $ 227.38 Dow Jones U.S. Restaurant & Bar Index $ 100.00 $ 101.30 $ 124.18 $ 106.75 $ 121.60 $ 148.63 Russell 2000 Index $ 100.00 $ 98.97 $ 144.70 $ 109.28 $ 117.18 $ 146.38 Item 6. [RESERVED] 29 Table of Contents